PHH Earnings: Here’s Why Shares are Down Now
PHH Corporation (NYSE:PHH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.29%.
PHH Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $1.4 in the quarter versus EPS of $-1.00 in the year-earlier quarter.
Revenue: Rose 61.49% to $822 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: PHH Corporation reported adjusted EPS income of $1.4 per share. By that measure, the company beat the mean analyst estimate of $1.09. It beat the average revenue estimate of $769.53 million.
Quoting Management: Glen A. Messina, president and CEO of PHH Corporation, said, “Over the past year and a half, through the execution of our strategic priorities, PHH has made significant progress in placing the company in a position of strength to deal with the cyclical and dynamic nature of the mortgage industry. In the second quarter, our financial performance reflected the impact of a rising interest rate environment, which drove an increase in the value of our mortgage servicing rights and negatively impacted our mortgage origination volume. I’m pleased with the progress the company is making in managing through this transition period to a rising interest rate environment. Our results were also impacted by a charge related to the commutation of our remaining Atrium reinsurance contract. The Fleet business continued to provide solid profitability.”
Key Stats (on next page)…